This weekend’s auction clearance rates produced some encouraging early season results for sellers with signs that the market gloom and negativity widely predicted for the start of this year may have been oversold.Although rates remain lower than the same weekend last year, they are nonetheless well above the record lows recorded by both Melbourne and Sydney last December.
Listing numbers however understandably remain well below last year at the same time with sellers still somewhat hesitant to test the waters – as yet.
But if markets can build on todays figures over coming weekend as listings rise, confidence will certainly start to return to our housing markets.
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'It’s early days but auction markets rise' have 4 comments
February 10, 2019 Jimmy
Investors selling doesn’t seem to fit into these 2 types. I noticed lots of properties purchased in around 2014 are getting sold on realestate.com
February 10, 2019 Michael Yardney
They fit in the first category – financial circumstances – stats show 20% of sell up in the first year or two and 50% sell up in the first 5 years – unfortunately most investors get it wrong
February 10, 2019 Financial Gladiator
So if I do the maths here for a minute last year 306 properties were sold over a weekend in Sydney via Auction and now it is 186… that‘s a 40% decline YoY. The only reason people are throwing properties onto the market is because of the propert price declines forecasted for 2019 and 2020 and they don’t know if they can afford holding out the storm. Why else would you sell during a declining house pricing market?
February 10, 2019 Michael Yardney
There are 2 types of property sellers:-
1. Motivated sellers who have personal reasons they need to move including death, divorce, new baby, new job, financial circumstances etc
2. Discretionary sellers – who would like to move or upgrade their homes.
There is no doubt that those in category #2 are sitting on the sidelines waiting, but clearly not all sellers are panicking